E-commerce startup Beyoung on Friday said it has secured $4.89 million (Rs 40 crore) in an undisclosed funding round from revenue-based financier Klub.
The Udaipur-based startup will use the fresh funds for expanding its offline presence, marketing, scaling up technology stack and logistical development.
Founded in 2018 by Shivam Soni, Beyoung offers affordable clothing and accessories. The company claims to have achieved an annualized recurring revenue (ARR) of Rs 150 crore in FY23 and aims to reach Rs 500 crore in ARR by 2026.
"This investment will enable us to expand our footprint across India. We aim to open 100 offline stores in tier II and III cities in 2023," said Soni.
Klub, founded by Anurakt Jain and Ishita Verma, provides flexible growth capital ranging from Rs 2 lakh to Rs 30 crore with zero equity dilution or personal guarantees. The company has funded more than 380 brands across sectors in India.
“Klub's investment in Beyoung will help them to invest in technology, logistics, and marketing,” said Sudharsan Venkatakrishnan, vice president and head of capital platform at Klub.
Earlier this year, Klub extended credit up to Rs 50 crore (around $6 million) to six companies. These companies include vegan skincare brand Neemli Naturals, electric ride-sharing firm BluSmart Mobility, plastic-free toy store Ariro Wooden Toys, a home decor brand Ecofynd, solar energy firm Freyr Energy and electric scooter company Hero Electric.
Funding activity in the e-commerce space is seeing a resurgence this month with e-commerce startup Meolaa securing an undisclosed amount as part of its seed funding round led by Ranjan Pai, chairman of Manipal Education and Medical Group (MEMG). The week before that, JSW Group’s business-to-business (B2B) e-commerce arm, JSW One Platforms raised Rs 205 crore in a Series A funding round from Japan’s Mitsui & Co.